Spirent Communications has announced that it has entered into a definitive agreement to acquire the assets of Radvision’s Technology Business Unit (TBU), the part of the Radvision business responsible for delivering industry-leading developer solutions, for a cash consideration of $25.0 million, funded from existing cash resources. Based in Tel Aviv, Israel, the Radvision TBU offers a complete development and test suite for Voice and Video over IP communications, including Voice over LTE (VoLTE), and is currently part of Radvision Ltd., a wholly owned subsidiary of Avaya Inc. (“Avaya”).
Radvision TBU pioneered the introduction of Voice and Video over IP with a range of embedded technologies and test solutions, combining unique expertise in signalling, multimedia and IMS. Used by developers of mobile chipsets, mobile devices and communications infrastructure, as well as service providers worldwide, Radvision TBU’s solutions have helped enable the majority of today’s Voice and Video over IP deployments, such as VoLTE. Key solutions include:
"Radvision TBU has been at the leading-edge of providing developer toolkits and test and measurement solutions that enable mobile chip and device vendors, wireless and wireline infrastructure vendors, as well as Service Providers deliver voice and video products to market faster and with better quality. Radvision’s TBU voice and video delivery software will provide Spirent’s VoLTE customers with proven tools to rapidly add voice, video and messaging services to their applications and devices," said Boaz Raviv, Vice President, Video Collaboration Solutions, Avaya.
Spirent plans to maintain and strengthen the Radvision TBU portfolio of products and services and will integrate them into Spirent’s test solutions. Avaya, through Radvision Ltd., will retain and continue to operate its video conferencing business under the Video Business Unit.
The acquisition is expected to be earnings enhancing and cash generative in the first full year, and have a return on investment in excess of cost of capital. For the full year ended 30 September 2013, TBU unaudited financial information showed profit before tax of $2.7 million and gross assets of $4.0 million. TBU will be reported as part of Spirent’s Wireless and Service Experience division.
The transaction is subject to customary closing conditions and is expected to close within 30 to 60 days.
